Taxes

Residents and citizens of The Netherlands are eligible for several benefits that are provided by the Dutch government. Most of these benefits are made available through the Dutch Tax Office (Belastingdienst). Sometimes other official parties might be involved like the Sociale Verzekeringsbank or your local government like in the Community of Eindhoven. There are several kinds of benefits that you may be eligible for.

In a rough overview, most benefits relate to:
– renting a house
– childcare and raising a child
– health care

Changes in your family income might affect your benefits. For example; maybe you want to work more hours or less? That might affect any child support benefits and are mandatory to communicate to the Dutch Tax Office.

The Dutch Tax Office

The Dutch Tax Office (Belastingdienst) has an official website where all information can be found: https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/individuals/benefits/benefits

Any changes to your benefits must be communicated to the Dutch Tax Office.
If you want to calculate how changes might affect your income this might be helpful: https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/themaoverstijgend/calculation_tools/calculation_tools_individuals

Hoewever, navigating through this might raise more questions.
If needed, we call in legal experts. I work with certified Financial Planners with legal expertise to make a sound calculation that can be used as input to our financial plan for your future.

30 % ruling

And then there is the 30% ruling for expats that are in highly skilled jobs whose expertise is hard to find on the Dutch job market. There are very specific conditions that apply to benefit from this tax reduction. In a nutshell -and as of 2019- if applicable you will benefit from this tax reduction on your gross salary for 5 years (maximum) with a 30% discount. It used to be 8 years and there is a grace periode of 2 years for those who are negatively affected by the change.

The 30% ruling also negatively affects tax benefits on your residential mortgage loan, any unemployment or disability benefits, pension scheme and social security: https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/individuals/living_and_working/working_in_another_country_temporarily/you_are_coming_to_work_in_the_netherlands/30_facility_for_incoming_employees/.

After that period of 5 years (or 5+2 years) this tax reduction is no longer available to you and that might seriously affect your household income. If this extra money has been used for that whole period, making changes to your spending habits and preferences might be very necessary. As a financial coach I can help you make that necessary transition.

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